John developed a food additive that replaces processed sugars. He granted the right to use this additive to a major cereal manufacturer, and John now receives a $0.50 royalty for every box of cereal sold that contains this additive. What is this an example of?

Answers

Answer 1

Answer:

Answer: Licensing

Explanation:

John's ingredient is his intellectual property. By giving the right regarding the usage of the ingredient to another business entity and by receiving a sales volume related royalty payment for each box sold, John is involved in a licensing agreement.

Two parties are involved in each licensing agreement: the licencor and the licencee. In this example, John is the licencor and the cereal manufacturer is the licencee. Both of the parties sign the licensing agreement, which is active over a specified amount of time.

Licensing is not to be confused with franchising. It refers to a specific business model when the franchisee operates under the brand (logo and trademark) of the franchiser, but essentially keeps its independence branch-wise. Best examples are McDonald's and KFC.

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A sound savings program and adequate insurance protection form the foundation of financial security. True or false

Answers

Answer:

True

Explanation:

Financial security is the satisfaction that one has sufficient money to meet their daily expenses, cover for emergencies, and work towards meeting their financial goals. Achieving financial security is a long-term goal for many individuals and organizations. Meeting this objective requires following certain principles.

A savings plan and insurance are some of the foundations for achieving financial security. Saving helps one attain financial goals, while insurance is essential in case of emergencies. Having a personal financial plan, with or without a personal finance manager, is another vital element in achieving financial security.

Your _______ should furnish enough money to live on, in an emergency, for six months. A. savings
B. interest
C. IRA
D. investments

Answers

Your A) SAVINGS should furnish enough money to live on, in an emergency, for six months.

Savings should at minimum be equivalent to the amount you spend for your basic needs for a month. Multiply it for 6 months because in case you are unemployed, you will still be able to meet your needs for six months. Giving you time to recoup and find other employment.

IRA is Individual Retirement Account - This is intended for your retirement.
Investments are usually bonds or securities which may take quite some time before it can be liquidated.

Advantages of borrowed capital

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Oneof the advantages of borrowed capital is that interest rate is low because thedebts are secured by the assets of the business. With sufficient capital, the potentialrate of the profit will be high. The profit rate is higher than the interestrate from debt. Another advantage is that the interest from the borrowedcapital is considered as an expense. The interest from the debt is included asan expense which is a deduction from the income. Thus, the income will be lesserand the income tax will also be lowered.

What happens to the individual demand curve as the price of an item increases?

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the individual demand for an item will decrease, causing a downward slope

Since the price of an item increases, there will be less and less people who can afford and prefer to buy it, therefore, the consumers' demand for that item will decrease

Business are hiring workers and GDP starts to increase as consumer spending increases. A. peak
B. Contraction
C. Trough
D. Expansion

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Answer:D Expansion

Explanation:

Economics Definition of Expansion is: It is a period of economic growth as measured by a rise in real GDP.

A person observes that consumer prices often fall when a nation experiences economic growth. The person then concludes that falling consumer prices lead to economic growth. This would be an example of the fallacy of composition. Biases. Confusing correlation and causation. The use of loaded terminology.

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The person then concludes that falling consumer prices leads to economic growth. This would be an example of "Confusing correlation and causation".

Correlation is the connection between two sets of variables used to depict or anticipate data. There is an emphasis here on relationship. Sometimes we can utilize relationship to discover causality, however not generally. Keep in mind that connection can either be certain or negative.

Causation, otherwise called cause and effect, is the point at which a watched occasion or activity seems to have caused a second occasion or activity.

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